ARE 242

Spring 2005

Course Syllabus

Gordon Rausser

Tuesdays and Thursdays, 12:30–2:00

201 Giannini Hall

Class Date		Reading Assignment
Tuesday January 18		Rausser, G.C. and R.E. Goodhue. “Public Policy: Its Many Analytical Dimensions,” in Handbook of Agricultural Economics, B. Gardner and G. Rausser (eds.). Volume 2, Chapter 39, Elsevier North Holland, 2002.
Thursday January 20		Alston, J.M. and J.S. James. “The Incidence of Agricultural Policy,” in Handbook of Agricultural Economics, B. Gardner and G. Rausser (eds.). Volume 2, Chapter 33, Elsevier North Holland, 2002. Chambers, R.G., “The incidence of agricultural policies,” Journal of Public Economics 57, (1995) 317-335. Floyd, J.E. “The Effects of Farm Price Supports on the Returns to Land and Labor in Agriculture.” Journal of Political Economy 73 (1965), p. 148-158.
Tuesday January 25		Baylis, K., G. Rausser, and L. Simon, “Agri-Environmental Program in the United States and European Union,” in Agricultural Policy Reform and the WTO: Where Are We Heading?,” G. Anania, M.E. Bohman, C.A. Carter, and A.F. McCalla (eds.) Cheltenham, UK: Edward Elgar, 2004. Glebe, T.W. “Multifunctionality: How “Green” is the “European Model of Agriculture”? Environmental Economics, Resource Economics and Agricultural Policy Research Group, Discussion Paper 01-2003. Swinbank, A. “Multifunctionality: A European Euphemism for Protection?” Presented at the FWAG Conference: Multifunctional Agriculture—A European Model, Stoneleigh, UK, November 29, 2001.
Thursday January 27		Hodge, I. “Agri-environmental Relationships and the Choice of Policy Mechanism,” The World Economy, 26 (5), May, 2003, 705–725. Blandford, D. and R.N. Boisvert, “Multifunctional Agriculture—A View from the United States,” Plenary paper presented at the 90th EAAE Seminar: Multifunctional Agriculture, Policies and Markets: Understanding the Critical Linkage; Rennes, France, October 28-29, 2004. Normile, M.A. and S.E. Leetmaa, coordinators, “U.S.-EU Food and Agriculture Comparisons,” Market and Trade Economics Division, Economic Research Service, U.S. Department of Agriculture, Agriculture and Trade Report. WRS-04-04. Potter, C. and Burney, J. Agricultural Multifunctionality in the WTO: Legitimate Non-Trade Concern or Disguised Protectionism?, Journal of Rural Studies, 2002, pp. 35-47.
Tuesday February 1	Innes, R., “Market Failures and Second-best Analysis, with a Focus on Nutrition, Credit and Incomplete Markets,” in Handbook of Agricultural Economics, B. Gardner and G. Rausser (eds.). Volume 2, Chapter 35, Elsevier North Holland, 2002. Chambers, R.G. “Information, Incentives and the Design of Agricultural Policies,” in Handbook of Agricultural Economics, B. Gardner and G. Rausser (eds.). Volume 2, Chapter 34, Elsevier North Holland, 2002. Baron, D. “Design of Regulatory Mechanisms and Institutions,” in R. Schmalensee and R. Willig, eds., Handbook of Industrial Organization (Vol. 2). New York: North-Holland. 1989. Kydland, F.E. and E.C. Prescott, “Rules Rather than Discretion: The Inconsistency of Optimal Plans.” Journal of Political Economy, Vol. 85 (1977), pp. 473-492.
Thursday February 3	Aaron, H.J., “Politics and the Professors Revisited.” American Economic Review 79 (1989), 1-15. de Gorter, H. “Political Economy of Agricultural Policy,” in Handbook of Agricultural Economics, B. Gardner and G. Rausser (eds.). Volume 2, Chapter 36, Elsevier North Holland, 2002.
Tuesday February 8	Downs, A. Economic Theory of Democracy. New York: Harper, 1957. Olson, M. The Logic of Collective Action. Harvard University Press, Cambridge, Massachusetts, 1965.
Thursday February 10	Steiner, P.O. “The Public Sector and the Public Interest,” in An Analysis and Evaluation of Public Expenditures: The PPB System. Compendium of papers submitted to the Subcommittee on Economy and Government of the Joint Economic Committee, Congress of the United States, Vol. 1 (1969) pp. 14-65.
Tuesday February 15	Tullock, G. “The Welfare Costs of Tariffs, Monopolies and Theft.” Western Economics Journal, Vol. 5 (1967), pp. 224-232

Thursday February 17	Bhagwati, J.N., “Directly Unproductive Profit Seeking Activities: A Welfare Theoretic Synthesis and Generalization.” Journal of Political Economy, Vol. 90, pp. 988-1002. Krueger, A.O. “The Political Economy of the Rent-Seeking Society.” American Economic Review Vol. 64 (1974) pp. 291-303. Krueger, A., “Political economy of agricultural policy,” Public Choice 87:1 (1996) 73-175. Peltzman, S., “Toward a General Theory of Regulation,” Journal of Law and Economics 211 (1976), 211-40. Stigler, G. “The Theory of Economic Regulation.” Bell Journal of Economics, Vol. 2 (1971) pp.3-21.
Tuesday February 22	Becker, G.S. “A Theory of Competition Among Pressure Groups for Political Influence,” Quarterly Journal of Economics, Vol. 98, No. 3 (August 1983) pp. 371-400. Becker, G.S. “Public Policies, Pressure Groups, and Dead Weight Costs,” Journal of Public Economics, December 1985, Vol. 28, No. 3, pp. 329-347.
Thursday February 24	Grossman, G.M. and E. Helpman, “Protection for sale,” The American Economic Review 84 (1994), 833-850. Grossman, G.M. and E. Helpman, “Trade wars and trade talks,” Journal of Political Economy 103 (1995), 675-708.
Tuesday March 1	Harsanyi, J.C., “A Simplified Bargaining Model for the n-Person Cooperative Game,” International Economic Review 4 (1963), 193-220. Harsanyi, J.C. Rational Behavior and Bargaining Equilibrium in Games and Social Situations. Cambridge: Cambridge University Press, 1977. Nash, J.F., “The Bargaining Problem,” Econometrica 18 (1950) pp. 155-162. Nash, J.F. “Two-Person Cooperative Games.” Econometrica 21 (1953) pp. 128-140. Rausser, G.C. and P. Zusman. “The Nash Solution to the Bargaining Problem,” in Political Power and Endogenous Policy Formation, Chapter 2,Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. “The Harsanyi Solution to the Bargaining Problem,” in Political Power and Endogenous Policy Formation, Chapter 3, Cambridge University Press (forthcoming).
Thursday March 3	Ball, R. “Interest Groups, Influence and Welfare, “Economics and Politics 7 (1995): 119-46. Beghin, J.C. and W.E. Foster, “Political criterion functions and the analysis of wealth transfers,” American Journal of Agricultural Economics 74 (1992), 787-793. Bullock, D.S., “In Search of Rational Government: What Political Preference Function Studies Measure and Assume,” American Journal of Agricultural Economics 76 (1994), 347-361. Rausser, G.C. and P. Zusman. “Static Political Economic Analysis,” in Political Power and Endogenous Policy Formation, Chapter 4, Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. “Normative Political-Economic Analysis,” in Political Power and Endogenous Policy Formation, Chapter 5, Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. “Dynamic Political Economic Analysis,” in Political Power and Endogenous Policy Formation, Chapter 6, Cambridge University Press (forthcoming).
Tuesday March 8	RKhanna, J., “Cooperative versus noncooperative behavior: the case of agricultural research,” The Review of Economics and Statistics 75 (1993), 346-352. López, R.A., “Political economy of U.S. sugar policies,” American Journal of Agricultural Economics 71 (1989), 20-31. Rausser, G.C. and P. Zusman. “Political Power, Ideology and Organizational Structures,” in Political Power and Endogenous Policy Formation, Chapter 7, Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. “Political Power, Influence and Lobbying,” in Political Power and Endogenous Policy Formation, Chapter 8, Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. “The Political Economy of Commodity Market Intervention,” in Political Power and Endogenous Policy Formation, Chapter 10, Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. “The Political Economy of Public Research and Development,” in Political Power and Endogenous Policy Formation, Chapter 11, Cambridge University Press (forthcoming).

Thursday March 10

de Gorter, H., G.C. Rausser and D.J. Nielson. “Productive and Predatory Public Policies: Research Expenditures and Producer Subsidies in Agriculture.” American Journal of Agricultural Economics, Vol. 74, No. 1 (February 1992) pp. 27-37. Rausser, G.C. and P. Zusman. “Political-Economic Analysis of Redistributive Policy and Public Good Policy,” in Political Power and Endogenous Policy Formation, Chapter 12, Cambridge University Press (forthcoming). Foster, W.E. and G.C. Rausser. “Price Distorting Compensation Serving the Consumer and Taxpayer Interest.” Public Choice, Vol. 77, No. 2 (October 1993) pp. 275-291. Rausser, G.C. and P. Zusman. “Interest Groups, Coalition Breaking, and Productive Policies,” in Political Power and Endogenous Policy Formation, Chapter 13, Cambridge University Press (forthcoming).

Tuesday March 15	Rausser, G.C. and P. Zusman. “Political-Economic Analysis of Land Reform,” in Political Power and Endogenous Policy Formation, Chapter 14, Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. “Political-Economic Analysis of Water Resource Systems,” in Political Power and Endogenous Policy Formation, Chapter 15, Cambridge University Press (forthcoming).
Thursday March 17	Rausser, G.C. and P. Zusman. “The Political Economy of Trade Liberalization,” in Political Power and Endogenous Policy Formation, Chapter 16, Cambridge University Press (forthcoming). de Gorter, H., G.C. Rausser and A. Schmitz. “Rent Seeking and International Trade in Agriculture,” in Agricultural Globalization, Trade, and the Environment, Moss, C.B., Rausser, G.C., Schmitz, A., Taylor, T.G. and Zilberman, D. (eds.), Kluwer Academic Publishers, Massachusetts, 2001.
Tues/Thurs March 22, 24	SPRING BREAK
Tuesday March 29	Rausser, G.C. and P. Zusman. “Political Econometrics,” in Political Power and Endogenous Policy Formation, Chapter 18, Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. “The Political Econometrics of the Israeli Dairy Industry,” in Political Power and Endogenous Policy Formation, Chapter 19, Cambridge University Press (forthcoming). Rausser, G.C. and P. Zusman. “The Political Econometrics of the U.S. Wheat Industry,” in Political Power and Endogenous Policy Formation, Chapter 21, Cambridge University Press (forthcoming).

Thursday March 31	McCubbins, M.D, R.G. Noll, and B.R. Weingast. “Structure and Process, Politics and Policy: Administrative Arrangement and the Political Control of Agencies,” Virginia Law Review, Vol. 75, pp.431-482. Rausser, G.C. and L.K. Simon. “A Non Cooperative Model of Collective Decision Making: A Multi-lateral Bargaining Approach,” Working Paper, Department of Agricultural and Resource Economics, University of California at Berkeley (1999).
PRODUCTION Thursday April 21		Boisvert, R. (2001a). Joint production in four outputs: Two agricultural commodities and positive and negative externalities.  Multifunctionality: Towards an Analytical Framework, OECD, Paris, pp. 125–132. Hodge, I. (2000). Agri-environmental relationships and the choice of policy mechanism, The World Economy 23(2): 257–273. Le Cotty, T. L. and Voituriez, T. (2003). Multifunctionality and non-agricultural supply of public goods.
VALUATION Tuesday            April 26		Batie, S. (2003) The multi-functional attributes of northeastern agriculture: A research agenda. Agricultural and Resrouce Economics Review 32(1): 1-8. Bersgstrom, J.C. Economic Valuation of Farm and Ranch Land Amenities:  What Economists Have Learned about Public Values and Preferences Boisvert, R. (2001b) A note on the concept of jointness in production. Multifunctionality: Towards an Analytical Framework, OECD, Paris, pp. 105-122. Bredhal, M., J.G. Lee, and P.L. Paarlberg (2003) Implementing Multifucntionality, contributed paper presented at the Internatioanl Conference Agricultural policy reform and the WTO: where are we heading? Capri , Italy June 23-26, 2003. OECD (2001) Summary and conclusions.Multifunctionality: Towards an Analytical Framework, OECD, Paris, pp. 9-25 Pretty, J. et al (2001) Policy and Practice: Policy Challenges and Priorities for Internalizing the Externalities of Modern Agriculture, Journal of Environmental Planning and Management 44(2):263-283. Racevkis, L. et al (2000) Improved Information in Support of a Natioanl Strategy for Open land Policies: A Review of Literature and Report on Research on Progress, paper prepared for the 24th International Conference of Agricultural Economists, Berlin, Germany, August 13-18, 2000. Randall, A. (2002) Valuing the outputs of agriculture.  European Journal of Agricultural Economics 29(3): 289-307.
POLICY Thursday            April 28 POLICY cont.		Antle, J. (1991). Farm policy reform and the environment, American Journal of Agricultural Economics 73(3): 917–921. Just, R. and Antle, J. (1990). Interactions between agricultural and environmental policies: A conceptual framework, American Economic Review 80(2): 197–202. Just, R.,  and Gordon Rausser (1992). Environmental and Agricultural Policy Linkages and  Reforms in the United States under the GATT, American Journal of Agricultural Economics 74 (3): 766-774. Rausser, Gordon (1992). Predatory Versus Productive Governments: The Case of U.S. Agricultural Policy, Journal of Economic Perspectives 6(3):133-57. Weinberg, M. and Kling, C. (1996). Uncoordinated agricultural and environmental policymaking: An application to irrigated agriculture in the west, American Journal of Agricultural Economics 88(1): 65–78. Wu, Junjie, David Zilberman, and Bruce A. Babcock (2001). Environmental and Distributional Impacts of Conservation Targeting Strategies, Journal of Environmental Economics and Management 41 (3): 333-350.
Tuesday May 3		Bredhal, M., Lee, J. and Paarlberg, P. (2003). Implementing multifunctionality.  Contributed Paper presented at  the International Conference: Agricultural Policy Reform and the WTO: where are we heading? Capi, Italy,  June 23-26, 2003 Claassen, R., Hansen, L., Peters, M., Breneman, V., Weinberg, M., Cattaneo, A., Feather, P., Gadsby, D., Hellerstein, D., Hopkins,J., Johnston, P., Morehart, M. and Smith, M. (2001). Agri-environmental policy at the crossroads: Guideposts on a changing landscape. European Commission, (2005) Agri-environment Meaures: Overview on General Principles, Types of Measures, and Application. Guyomard, H., Moel, C. L. and Gobin, A. (2004). Impacts of alternative agricultural income support schemes on multiple policy goals, European Review of Agricultural Economics 31(2): 125–148. Harvey, D. (2003). Agri-environmental relationships and multi-functionality: Further considerations, The World Economy 26(5): 705–725. Lankoski, J., E. Lichtenberg, and M. Ollikainen (2005) Agri-environmental Policy in a Heterogenous Landscape. Lankoski, J. and M. Ollikainen (2003) Agri-environmental externalities: a framework for designing targeted policies, European Review of Agricultural Economics 30(1): 51-75. Latacz-Lohmann, U. and Hodge, I. (2003). European agri-environmental policy for the 21st century, The Australian Journal of Agricultural and Resource Economics 47(1): 129–139. Peterson, J., Boisvert, R. and de Gorter, H. (2002). Environmental policies for a multifunctional agricultural sector in open economies, European Review of Agricultural Economics 29(4): 423–443. Vatn, A. (2002). Multifunctional agriculture: some consequences for international trade regimes, European Review of Agricultural Economics 29(3): 309–327.
WTO Thursday May 5 WTO cont.		Anderson, K. (2000). Agriculture’s ‘multifunctionality’ and the WTO, The Australian Journal of Agricultural and Resource Economics 44(3): 475–494. Blandford, D., Boisvert, R. and Fulponi, L. (2003). Nontrade concerns: Reconciling domestic policy objectives with freer trade in agricultural products, American Journal of Agricultural Economics 85(3): 668–673. Paarlberg, P., Bredahl, M. and Lee, J. (2002)  Multifunctionality and agricultural trade negotiations, Review of Agricultural Economics 24(2): 332–335.
Tuesday May 10		EU Comprehensive Negotiating Proposal (2000). Proposal for Comprehensive Long-term Agricultural Trade Reform (2000). Swinbank, A. (2001) Multifunctionality: A European euphemism for protection? Burrell, A. (2001) Multifunctionality and agricultural trade liberalisation, paper presented at the 77th EAAE Seminar/NJF Seminar No.325, August 17-18, Helsinki. OECD/OCDE (1998) Agriculture in the Urugauy Round, document submitted by U.S. for Session I of the OECD Workshop on Emerging Issues in Agriculture, Paris, October 26-27. OECD/OCDE (1998) Decoupling Farm Income Support, paper submitted by Australia for Session IIa of the OECD Workshop on Emerging Trade Issues, Paris, October 26-27. OECD/OCDE (1998) Green Box Policies and the Environment, paper submitted by U.S. for Session II of the OECD Workshop on Emerging Trade Issues in Agriculture, Paris, October 26-27.